Trade disputes on the rise
Trade disputes on the rise
With the growth of merger and acquisition activities in Vietnam, the number of trade disputes in Vietnam is on the rise.
The Vietnam International Arbitration Center (VIAC), one of the 22 arbitration centers mediating disputes outside the courts, received 180 cases last year, with a combined dispute value of VND9.4 trillion, the highest in its 25-year history and higher than the previous year’s figure.
One major case may see a dispute value of up to US$145.2 million, with an average of US$2.2 million.
In addition, disputes involving foreign direct investment firms account for a large proportion and are on the rise.
According to Vu Anh Duong, vice president and general secretary of the VIAC, one of the reasons for the record high number of disputes at the center is the vibrant activity of the Vietnamese economy, with significant business cooperation and investments.
In addition, the Government is working to improve the legal corridor in terms of arbitration and information on trade arbitration to encourage firms to settle disputes in this manner.
Duong noted that while almost all disputes in the past concerned goods purchases and foreign businesses, disputes are now more diverse and involve domestic firms.
Compared to the handling of disputes through the courts, trade arbitrators can help shorten dispute settlements, taking 150 days per case on average, according to the VIAC.
